WATEEN TELECOM LIMITED - INITIAL PUBLIC OFFERING (Coming Soon)
Brief Term Sheet
Transaction: Initial Public offering of ordinary Shares
Company: Wateen Telecom Limited
No. of shares: Up to 110,000,000 ordinary shares through IPO
Up to 90,000,000 ordinary shares through Green-shoe Option
Issue price: PKR10/- per share
Issue amount: PkR 2,000,000,000/- (PkR 2.0 bn)
Advisors and Arrangers: Arif Habib Limited
Participants/Investors: Institutional investors and general public
IPO of Wateen
Wateen Telecom Ltd. is offering 110 mn shares with an additional Green-Shoe option of 90 mn shares amounting to PkR 2,000 mn. The IPO will be offered to Institutional investors and general public at a par value of PkR 10.0 per share.
The proceeds of the IPO would be utilized for
(i) the repayment of company?s financial obligations amounting to PkR1.49 bn arising out of payment of LCs and;
(ii) Acquisition of additional stake in the subsidiary company - Wateen Solutions (Pvt.) Ltd. by making a payment of PkR 490 mn.
Wateen Telecom Ltd. ? an overview
Wateen Telecom Ltd. offers a wide range of telecom services mainly Wimax, Fiber Optic and Satellite services to retail and corporate clients. Services offered by Wateen can be divided in the following broad categories:
(i) Managed Services (Optic Fiber Cable)
(ii) Wateen Solutions like Co-location / Tele-housing and System Integration.
(iii) Broadband services offering Internet and Data Portfolio.
(iv) Telephony which also includes Audio Conferencing, Video Telephony, Carrier Pre Select and Calling Card.
So far, Wateen has deployed Wimax network across the four provinces of the country, thus, attaining a market share of 60% with over 150,000 wireless broadband customers and 12,000 customers using broadband services over fiber optic. It has an optic fiber network across Pakistan including metro connectivity in 22 cities powering other telecom operators. It also holds 20% market share in the LDI business with more than 1 billion minutes of traffic volume. Moreover, Wateen provides Satellite services locally and to telecom operators in Afghanistan as well. It has built NGN (Next Generation Network) allowing it to of?fer differentiated products at a lower cost of delivery compared to its competitors.
Sponsors of the company
Wateen Telecom Limited, a group company of Abu Dhabi Group, commenced operations from May 1, 2005, by offering Long Distance International (LDI) services in Pakistan. Abu Dhabi Group is one of the largest business groups in the Middle East and the single largest foreign investor in Pakistan. It has diversified business interests, offering strong financial resources and extensive management expertise that result in commercial success for several institutions. Abu Dhabi Group owns Wateen through Warid Tele?com International and Bank Alfalah Ltd which hold 79.8% and 20.0% shares respectively.
- Warid Telecom Interna?tional LLC.
Warid Telecom has operations in four coun?tries and collectively entertains 27.7 million subscribers. Warid Telecom is a joint venture between Abu Dhabi Group & SingTel Group.
- Bank Alfalah Limited
Bank Alfalah Limited, the second major sponsor is a leading banking institution and has a 6.6% share in the overall commercial banking deposits in Pakistan as of 30 September, 2009. The bank has a presence in different cities of Pakistan with 321 branches in its banking network as of 31 December 2009.